OK to pay overtime to salaried supervisors? — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

OK to pay overtime to salaried supervisors?

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in Human Resources,Overtime Labor Laws

Q. Our company pays overtime to salaried supervisors for hours they work over 40 in a week. I have never heard of this compensation practice. Is it legal?

A. If the supervisors are nonexempt (which they might be even if salaried), then paying overtime is not only legal, it is required.

If they are exempt, however, paying overtime is risky because it suggests that they are not truly exempt. Exempt employees should be paid the same salary every week regardless of how many hours they work. Paying them overtime risks losing their exempt status.

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